Transcript AUTHORITY DELEGATION

AUTHORITY
A U T H O R I T Y
Authority is the legal right to give orders and
get order obeyed
Sources of Authorities
Legal/Formal authority
Traditional authority
Acceptance authority
Competence authority
Charismatic authority
Legal Authority
According to this theory, Authority is based upon the rank or position of the person and this
authority may be given by law or by social rules and regulation protected by law.
Example : A law may grant authority to the policeman to arrest a person committing a crime
Traditional Authority
Traditional authority has develop from a social order communal relationship in the
form of ruling lord and obedient subjects.
Example : In a family system father exercises traditional authority over members of the
family . It is the father who guides the activity of the family and others obey out of
respect and traditions.
Acceptance Authority
Chester Bernard was of the view that it is the acceptance of the
authority which is more important. If the subordinates do not
accept the order of the superior there will be no use of
exercising authority. It means that orders flow from bottom to
top.
Competence Authority
Authority is also generated by personal qualities of a person. The
advice of some persons may be accepted even if they don’t have a
formal authority.
Example : When a doctor advises rest to a patient he accept this advice
because of doctor’s knowledge and not of his formal authority.
Charismatic Authority
The Charismatic authority rests on the personal Charisma of a leader who
commands the respect of his followers.
The followers become attached to the leader because they feel that he will
help them in achieving in their goals.
Example : Film actors, Film actresses, Political leaders
RESPONSIBILITY
Responsibility is the obligation to do something .
It is the duty that one has to perform in organizational
task, functions or assignments.
According to George Terry defines responsibility as,
“Responsibility is the obligation to carry out assigned
activities to the best of his abilities .
Features of Responsibility
Responsibility arises from superior subordinates
relationship .
It always flow upward from juniors to seniors.
It arises from the duty assigned.
It is the obligation to complete the job as per
instructions.
WHAT IS
ACCOUNTABILITY???????????
Accountability is the obligation of an individual to
formally report to his superior about the work he has done
to discharge his responsibility.
Nature of
Accountability
Can’t be delegated
Always upward
Unitary
Accountability standards
DIFFERENCE
Basis
Meaning
Authority
Responsibility
Right to command Obligation
Perform
assigned task.
Delegation Can be delegated
Flow
Accountability
to Answerability for
an outcome of the
assigned task.
Cannot be entirely
delegated
Flows downward Flows upward from
from superior to subordinate
to
subordinate
superior
Cannot
be
delegated at all
Flows
upward
from subordinate
to superior
Legitimate Power
• Legitimate Power is when a person is lawfully entitled to exercise
power over the other
• Constructive vs. Destructive
Power: The Key to Leadership
• Reward Power
– The ability of a manager to give or withhold tangible and
intangible rewards.
– Effective managers use reward power to signal to employees that
they are doing a good job.
14-25
Power: The Key to Leadership
• Coercive Power
– The ability of a manager to punish others.
• Examples: verbal reprimand, pay cuts, and dismissal
• Limited in effectiveness and application; can have serious negative side
effects.
14-27
Expert Power
• Expert Power involves valued knowledge or
information which gives that particular individual
an advantage in power.
• In this a person has some kind of expert
knowledge or he is specialist in a particular case.
Referent Power
• Referent Power comes about when one’s personality becomes the
reason with compliance. This is commonly seen in role models .
 Refers to the power to make
decisions
 Right to command
 Exercised because of position
 It flows from top to bottom in
managerial hierarchy
 Delegated to lower levels from
higher levels
Refers to capacity to
influence others
Capacity to command
Exercised because of persons
It can flow in any direction
from top to bottom or
bottom to top
Acquired by different means
 Managers fear loss of power , authority and control
 Employees are not able to make responsible
decisions.
 Sharing information means leaking ideas, plans, and
knowledge.
 Not everyone wants to be empowered
Allen, “The entrustment of a part of the work,or
responsibility and authority to another, and the creation of
accountability for performance “
Elements
1.Assignment of responsibility
2. Grant of authority
3. Creation of accountability
1.Principle of functional definition
2. Principle of unity of command
3. Delegation results expected
4. Absoluteness of responsibility
5. Parity of authority and responsibility
6. Authority level principle
7. The scalar principle
 General or specific delegation
 Formal or informal delegation
 Lateral delegation
 Reserved authority and delegated authority
Willingness to
delegate
Climate of trust and
confidence
Faith in subordinates
Fear of supervision
1.Over confidence of superior
2. Lack of confidence in subordinates
3. Lack of ability in superior
4. Lack of proper controls
5. Lack of proper temperament of
superior
6. Instability of subordinates
Factors affecting degree of
delegation
1. company’s history
2. Availability of capable
persons
3.Importance and
costliness of decisions
4. Size of the enterprise
5. Available controls
6. Types of enterprise
7. Environmental factors
1. Defining of assignments
2. Proper selection of
persons
3. Proper communication
4. Establishing proper
controls
5. Rewords for proper
implementation
 Centralization is the process where the authority and power of an
organization is in the hands of only a few. This power includes activities
such as planning, decision-making and delegating authority. The top
management takes all the important decisions if an organization is
centralized. These decisions are then enforced on the lower tiers of the
organization.
Factors determining centralisation of
authority
Achieving uniformity of action
 Facilitating integration
 Promoting personal leadership
 Handling emergencies

Disadvantages
 Destroys individual initiative
 Over burden of few
 Slows down the operations
 Distance from customers
 No scope of specialisation
 Decentralisation implies the dispersal of
decisions – making power at lower level.
As organizations grow bigger these days,
the power is distributed at different levels
to be able run the organization more
efficiently. This is called
decentralization. Thus, decentralization
can be defined as the delegation of
authority at all levels of an organization.
Size
and complexity of
organisation
Communication system
Degree of
standardisation
Spread of activities
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